As the cost of living continues to rise across Canada, Old Age Security (OAS) remains one of the most essential government benefits supporting seniors. With May 2025 OAS payments scheduled and new rates in place, it’s critical for retirees and soon-to-be retirees to stay updated on payment amounts, eligibility criteria, GIS income limits, and tax considerations, including the OAS clawback.
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This comprehensive guide covers everything you need to know about OAS in May 2025, helping you maximize your retirement income and avoid common pitfalls.
What Is Old Age Security (OAS) in Canada?
The Old Age Security (OAS) program is a monthly pension funded by the Government of Canada and delivered by Service Canada. Unlike the Canada Pension Plan (CPP), OAS is not tied to employment history or contributions. It is instead based on age, legal status, and residency history in Canada.
OAS forms the foundation of Canada’s three-tier retirement income system, which includes:
- OAS – Government-funded base pension
- CPP/QPP – Employment-based contributions
- Private Retirement Savings – RRSPs, TFSAs, workplace pensions
Who Is Eligible for OAS Payments in May 2025?
Eligibility While Living in Canada
To receive OAS in May 2025, you must:
- Be 65 years or older
- Be a Canadian citizen or legal resident
- Have lived in Canada for at least 10 years since turning 18
Eligibility While Living Outside Canada
If you live abroad, you may still receive OAS if:
- You were a Canadian citizen or legal resident when you left Canada
- You lived in Canada for at least 20 years after turning 18
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May 2025 OAS Payment Amounts by Age Group
OAS payments are adjusted quarterly to reflect inflation and the cost of living. For May 2025, here are the maximum monthly payment amounts:
| Age Group | Monthly OAS Payment (Max) |
|---|---|
| 65 to 74 years | $727.67 |
| 75 years and older | $800.44 |
May 2025 OAS Payment Date: Thursday, May 29, 2025
Your actual payment may be lower depending on your income and how long you’ve lived in Canada.
Can You Increase Your OAS Payments? Yes — By Delaying
If you’re approaching 65, you can choose to delay your OAS pension for up to 60 months (5 years) to increase your monthly payments:
- Gain 0.6% more per month delayed
- Delay to age 70 = 36% more OAS monthly
This strategy is ideal for seniors with additional income sources or those expecting to live longer.
Are OAS Payments Taxable in 2025? Yes — and Clawback Rules Apply
OAS is considered taxable income, and you must report it on your annual tax return.
OAS Clawback (Recovery Tax) Thresholds for 2025
If your net annual income exceeds $86,912, your OAS is reduced at a rate of 15% of the excess amount.
| Age Group | Clawback Begins | OAS Fully Eliminated At |
|---|---|---|
| 65 to 74 years | $86,912 | $142,609 |
| 75 years and older | $86,912 | $148,179 |
To avoid or reduce clawback, consider tax planning strategies like splitting income, contributing to a TFSA, or delaying OAS.
Guaranteed Income Supplement (GIS) – Extra Support for Low-Income Seniors
The Guaranteed Income Supplement (GIS) is a non-taxable monthly benefit for seniors receiving OAS who have low or no other income.
GIS Income Limits for May 2025
| Situation | Annual Income Limit |
|---|---|
| Single senior | Under $21,624 |
| Couple (both on OAS) | Under $28,560 |
| Couple (only one on OAS) | Under $51,840 |
GIS amounts vary based on actual income, marital status, and other government benefits. Use the online GIS calculator on Canada.ca for personalized estimates.
How to Apply for OAS in 2025
Many seniors are automatically enrolled, but if you’re not, here’s how to apply:
Online Application Process
- Log in to your My Service Canada Account
- Complete and submit the OAS application
- Track application status online
Paper Application Option
- Download the form from Canada.ca
- Include all required documents (proof of age, residency, etc.)
- Mail to your local Service Canada office
Apply at least 6 months before your 65th birthday to avoid delays in your first payment.
FAQs About May 2025 OAS Payments
📌 When will OAS be paid in May 2025?
May 29, 2025 is the confirmed payment date.
📌 Is the OAS payment the same for everyone?
No. It depends on your age group, residency history, and income level.
📌 Can I delay OAS payments to get more per month?
Yes. Delaying up to age 70 can increase your monthly amount by up to 36%.
📌 Will GIS affect my OAS eligibility?
GIS is paid in addition to OAS, but income from other sources may affect how much GIS you receive.
Final Thoughts: Maximize Your OAS Benefits in May 2025 and Beyond
As one of Canada’s most important retirement benefits, Old Age Security (OAS) plays a vital role in maintaining financial stability for seniors. With up to $800.44/month, quarterly inflation adjustments, and GIS support for those most in need, staying informed about the May 2025 OAS payment schedule and related rules is essential.
Take action today by:
- Filing your taxes on time
- Applying early (if not automatically enrolled)
- Keeping your income below clawback thresholds if possible
- Considering OAS deferral for long-term benefits